Selected stock price target news of the day - August 02, 2023

By: Matthew Otto

 

Starbucks Reports Q3 2023 Financial Results, and Raises Earnings Guidance

 

Starbucks reported financial results for the third quarter of fiscal year 2023, and its revenue reached a record of $9.2 billion versus the consensus estimate of $9.29 billion, a 12% increase from the previous year, driven by a 10% growth in comparable store sales. Q3 EPS of $1.00, $0.05 better than the analyst estimate of $0.95.

 

The North America segment delivered record revenue of $6.7 billion, supported by a 7% increase in comparable store sales, and the U.S. business saw higher customer counts and strong performance from its Starbucks Rewards program. Starbucks’ international segment also performed well, with revenue reaching $2 billion, up 24% from the prior year, driven by strong growth in all major markets, particularly China, which experienced a 46% increase in comparable store sales.

 

The company’s strategic priorities highlighted during the third fiscal year 2023 conference call include digital innovation, global growth, and fueling productivity. Starbucks aims to invest in its digital capabilities, leverage AI for a better customer experience, and enhance its presence in underpenetrated areas. Despite a challenging macroeconomic environment, Starbucks remains confident in its long-term potential and has revised its earnings growth guidance to 16% to 17% for fiscal year 2023. The company continues to focus on delivering the Starbucks Experience and strengthening its brand as a leader in the coffee industry.

 

Analysts Varied Outlooks for Starbucks Stock, Adjusting Price Targets

  • Barclays analyst Jeffrey Bernstein maintains an Overweight rating and lowered Price target from $127 to $123.
  • Wedbush analyst Nick Setyan reiterates Neutral rating while Price target lowered from $112 to $105.
  • TD Cowen analyst Agnes Lim remains in Outperform rating and Price target at $117.
  • Stephens analyst Joshua Long maintains Equal-Weight rating and Price target at $110.
  • Stifel analyst Chris O’Cull lowered his price target to $110

 

Analyst Jon Tower (CITI) currently has the highest performing score on SBUX with 15/21 (71.43%) price target fulfillment ratio. His price targets carry an average of $12.67 (14.27%) potential upside. Starbucks stock price reaches these price targets on average within 98 days.

SolarEdge Technologies Forecasts Slower Revenue Growth Amidst Challenges in U.S. and European Solar Markets

 

SolarEdge Technologies reported that its third-quarter revenue is expected to fall below Wall Street estimates due to slowing demand for solar inverters in the United States and Europe. The U.S. solar market has been affected by low electricity prices, high borrowing costs, and a new metering reform in California, the largest solar market in the country. As a result, the company forecasts third-quarter revenue to be between $880 million and $920 million, below analysts’ expectations of $1.05 billion. Growth in the European market has also been more moderate than anticipated, leading distributors to adopt a cautious approach in managing cash flow.

 

Despite the challenges in the U.S. market, SolarEdge CEO Zvi Lando highlighted a 19% sequential increase in solar revenues from Europe, particularly in countries like the UK and Germany. However, the company’s U.S. solar revenue decreased by 23% compared to the previous quarter. On an adjusted basis, SolarEdge reported a profit of $2.62 per share for the second quarter, beating analysts’ average expectation of $2.52 per share.

 

Analysts Lower Price Targets Amidst Market Challenges

  • Barclays analyst Christine Cho maintains an Overweight rating and lowers the price target from $359 to $274.
  • BMO Capital analyst Ameet Thakkar reduces price target to $285.
  • Goldman Sachs analyst Brian Lee lowers price target to $353.
  • Susquehanna analyst Biju Perincheril decreased his price target to $305.
  • Citi analyst Vikram Bagri drops the price target to $330.

 

Analyst Christopher Souther (B.RILEY) currently has the highest performing score on SEDG with 5/10 (50%) price target fulfillment ratio. His price targets carry an average of $77.08 (31.73%) potential upside. SolarEdge Technologies stock price reaches these price targets on average within 126 days

Freshworks Reports Q2 2023 Earnings, Exceeding Expectations and Focusing on Larger Customers

 

In the Freshworks’ Second Quarter 2023 Earnings Conference Call, CEO Girish Mathrubootham highlighted the company’s performance, exceeding revenue expectations with $145.1 million for the quarter versus the consensus estimate of $141.44 million. EPS of $0.07 were $0.05 better than the analyst estimate of $0.02.

 

Dennis Woodside, Freshworks’ President, emphasized the 33% year-over-year growth in customers paying over $50,000 in ARR. The company’s focus on  shifting customers to annual contracts contributed to their non-GAAP operating profit of $11.7 million and 8% non-GAAP operating margin for the quarter.

 

Tyler Sloat, Freshworks’ CFO mnetioned a 20% year-over-year growth in revenue on a constant currency basis. He highlighted their cash flow generation, adding $10 million in cash, and outlined their raised estimate of $60 million in free cash flow for the full year 2023. Sloat also presented their forward-looking estimates, expecting revenue in the range of $149 million to $151.5 million for the third quarter and $587 million to $595 million for the full year 2023.

 

Analysts Boost Price Targets and Maintain Ratings for Freshworks

  • JMP Securities analyst Patrick Walravens maintains Outperform and raises price target from $23 to $25.
  • Oppenheimer analyst Brian Schwartz reiterates Outperform and raises price target from $17 to $23.
  • Needham analyst Scott Berg remains Buy and a $25 price target.
  • Canaccord Genuity analyst David Hynes upgrades from Hold to Buy and the price target from $15 to $25.
  • Piper Sandler analyst Brent Bracelin maintains Overweight and raises price target from $22 to $27.
  • Cantor Fitzgerald analyst Brett Knoblauch reiterates Overweight rating and raises price target from $18 to $22.
  • FBN Securities analyst Shebly Seyrafi maintains an Outperform rating and raises price target from $21 to $25.00.
  • JPMorgan analyst Pinjalim Bora raises price target to $21.
  • Credit Suisse analyst Rich Hilliker raises price target to $19.
  • Baird analyst Rob Oliver increases price target to $24.

 

Analyst Brent Bracelin (PIPER SANDLER) currently has the highest performing score on FRSH with 3/12 (25%) price target fulfillment ratio. Her price targets carry an average of $7.76 (39.72%) potential upside. Freshworks stock price reaches these price targets on average within 67 days

 

Daily stock Analysts Top Price Moves Snapshot